AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Marble Reinsurance Corporation (Marble Re) (Micronesia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Marble Re’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The balance sheet strength is well-supported by Marble Re’s risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital base, albeit small, is considered to be sufficient, supported by low net underwriting leverage and minimal investment risk due to a highly liquid and conservative investment portfolio. Although the company’s reinsurance dependency is moderately high, the risk is mitigated by its high quality and well-diversified reinsurance panel.

Marble Re has historically shown a strong and stable operating performance with a five-year average combined ratio of 52% (2020-2024). For fiscal-year ending 31 March 2025, the company recorded a moderate decrease in premium income mainly from its property and marine businesses. Nonetheless, the company’s underwriting profitability metrics remained favourable with its stringent underwriting guidelines and conservative reinsurance programme. Marble Re recorded a 20% growth in its net income compared to the previous year with an improved combined ratio of 38% in 2024. Recently, Marble Re raised its net retention limit for its non-marine business and for the expansion of its premium base. Nevertheless, the company’s underwriting profitability is expected to remain stable given the historically low loss ratio of its existing business and its modest contribution to the total portfolio.

As a wholly owned subsidiary and a single-parent captive of Marubeni Corporation (Marubeni), a major general trading company in Japan, Marble Re provides reinsurance and insurance protection against group-related risks across different regions. While Marble Re continues to explore further diversification of its business portfolio, its marine cargo business, which covers captive risk, will remain the company’s primary focus in the intermediate term. The company is well-integrated within the parent group with respect to risk management, corporate governance and internal control systems.

Negative rating actions could arise if Marble Re’s operating performance materially and adversely deviates from its business plan to a level that no longer supports AM Best’s current assessment. Negative rating actions also could occur if there is a significant deterioration in Marubeni’s credit profile, including its operating profitability, financial leverage and interest coverage levels. Positive rating actions, although unlikely, could occur if Marble Re demonstrates sustained and notable improvement in its balance sheet strength fundamentals or material growth in its capital base.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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